Rising nut costs cracking Sanfilippo

Shares in John B. Sanfilippo & Son Inc., seller of nuts under several brand names including Fisher, slid 16% last week to close at $18.85 after earnings failed to meet analyst expectations for the fourth consecutive quarter.

The rising cost of some nuts is preventing sales increases from boosting the company's bottom line. Net income of $3.5 million, or 32 cents per share, in the fiscal fourth quarter ended June 30 was flat from the same time last year and well below consensus analyst estimates of 43 cents per share.

Profit growth was lacking despite a 16% sales increase to $144 million. "It has been difficult to keep pace with these cost increases from a pricing standpoint without significantly impacting consumption," CEO Jasper Sanfilippo said in a press release. The Elk Grove Village-based company said it has raised prices to its distributors.

Relief may be in the offing. Prices for all nuts except almonds should level off in the next year, predicts analyst Scott Van Winkle of Boston-based investment bank Adams Harkness Inc. He rates the stock "market perform."